Question

Question
There are 3 companies that need to be analyzed ANIP, ODP​, MDCO How much cash do they have on hand; will they need to raise cash in the next year and if so when and how much? just get the data and explain what you would look at if you were to invest in them.

Answer 1

Company		ANIP	ODP	MDCO
	Cash in hand	10000	20000	30000
Month
1	Net cash in	5000	6000	7000
	Cash in hand	15000	26000	37000
2	Net cash in	-10000	-10000	-10000
	Cash in hand	5000	16000	27000
3	Net cash in	-15000	-15000	-15000
	Cash in hand	-10000	1000	12000
4	Net cash in
	Cash in hand	-10000	1000	12000
5	Net cash in
	Cash in hand	-10000	1000	12000
6	Net cash in
	Cash in hand	-10000	1000	12000
7	Net cash in
	Cash in hand	-10000	1000	12000
8	Net cash in
	Cash in hand	-10000	1000	12000
9	Net cash in
	Cash in hand	-10000	1000	12000
10	Net cash in
	Cash in hand	-10000	1000	12000
11	Net cash in
	Cash in hand	-10000	1000	12000
12	Net cash in
	Cash in hand	-10000	1000	12000
Based on the assumed data, ANIP will have to raise cash in the third month of next year
The cash raised should be more than $10000 to prevent a cash deficit.
If I were to invest in these companies, I would look at the variability of their
net cash inflows from month to month. It has been found that failing
companies have failed due to their highly variable cash flows rather
than their declining profitability.